FRANKFORT, Ky. - Opening arguments were made Tuesday in the federal jury trial of Jerry Lundergan, the father of Kentucky's Secretary of State, Alison Lundergan-Grimes.  He's accused of violating federal law by funneling corporate funds to his daughter's failed 2014 U.S. Senate campaign. 

Lundergan and co-defendant, Dale Emmons, are well-known political figures in Kentucky. Lundergan, a Lexington businessman, is the former chairman of the state Democratic Pary and is known for his close ties to Bill and Hillary Clinton. Emmons is a Democratic consultant who worked on various campaigns. If convicted, both men could face lengthy jail sentences.

Assistant U.S. Attorney Kate Smith told jurors on day one that the pair made illegal contributions in such a manner that they were hidden from the Grimes campaign's compliance team. She said a federal investigation followed a paper trail of invoices and checks to uncover the scheme. 

“This case is about two men ... using secret corporate money to run a federal campaign their way,” Smith said.

Lundergan's defense attorney J. Guthrie True said the contributions were mistakes because Grimes' campaign against Senate Majority Leader Mitch McConnell got off to a "rough start," but those mistakes weren't crimes. True said the campaign was understaffed and therefore the contributions were not listed in a campaign report. He said as soon as the oversights were found, the expenses were billed to the Grimes' campaign and the money was repaid.

Emmons' attorney, Brandon Wayne Marshall, said his client is a political consultant whose expertise is in shaping a campaign's message, not in reporting campaign finances.

“Dale has never, ever been involved in the complexities of campaign finance law,” he told jurors. Marshall said someone with Emmons' reputation and status wouldn't "risk it all" by violating federal law.

Smith disagreed with the defense saying both men knew exactly what they were doing and that they meant to do it. 

Lundergan is accused of hiring vendors for Grimes' campaign but paying for them from his business account and not asking for reimbursement from the campaign. An indictment showed Lundergan paid at least $218,000 for services that benefited his daughter's campaign. A portion of the money went to Emmons. The indictment accuses the conspiracy of beginning with Grimes' campaign kickoff in July 2013.

Prosecutors could call dozens of witnesses, including a Democratic strategist who served as a senior adviser to Grimes' campaign.

Grimes is finishing her second term as Kentucky's secretary of state and cannot seek reelection due to term limits.  

AP contributed to this story.